The stock market often reacts quickly to interest rate changes – certainly more quickly than many other areas of the economy, which may take up to 12 months to catch up. This can mean many opportunities for traders who analyze stock markets, both when buying and holding or employing a shorter-term speculative approach.

Interest rates and stock prices are closely linked: In this article, we will discuss interest rates in general before moving on to explore the overall impact they can have on stocks, and how to incorporate this information into analysis.

Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Stock valuation, also referred to as ‘equity valuation’, provides the framework for traders to identify when a stock is relatively cheap or expensive. The difference between a stock’s market value and its intrinsic value presents traders with an opportunity to benefit from this disparity.

Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. It is one of many types of pivot points traders can use to determine key levels, but the concept of support and resistance is well entrenched in all of them.

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The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. As a result, the ISM manufacturing, construction and services indicators can provide unique opportunities for forex traders, which makes understanding this data (and how to prepare for its monthly release) essential.

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There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Each major geographic market center can exhibit vastly unique traits and tendencies that can allow traders to effectively execute strategies at any time.

Although the forex market is the most liquid of all asset classes, there are periods whereby volatility is constant, and others subdued. Understanding these different forex session times can improve the reliability of a forex trading strategy.

In this article, we will explore each of these forex market sessions including their key characteristics – forex time zones and how they affect trading.

Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. This article will cover the following key areas about psychological levels and round numbers in forex trading:

Lagging indicators use past price data to provide entry and exit signals, while leading indicators provide traders with an indication of future price movements, while also using past price data. When faced with the dilemma of leading vs lagging indicators, which should traders choose? The answer to this question ultimately comes down to individual preference after understanding the advantages and limitations of each.

Throughout history there have been a number of extremely meaningful volatility spikes across major financial markets. Each had defining characteristics that made them similar, despite occurring in very different markets and for different reasons.

The continuity seen across these volatility cycles is a good thing, because while it doesn’t necessarily make a major volatility spike predictable, historical precedence offers a blueprint for identifying conditions that are supportive for a potential vol-event to occur, and how they are likely to unfold once in motion. This can be of great help in guiding trading decisions, whether that is to steer clear of a potential vol blow-up or move towards it with the appropriate strategy that can take advantage of the outsized price swings that come with unusual levels of volatility.

We will first discuss what a volatility event typically looks like in terms of the behavior of volatility itself, then take a close look at some...

The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. This article will look at the potentially higher probability forex trading opportunities of the bull flag pattern.

Learn to trade the bull flag pattern: Main talking points??

“Is there a best time frame to trade forex?” is a common question a lot of traders ask, especially those new to the forex market. The truth is, there is no single answer. It all depends on your preferred trading strategy and style.

Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Trend charts refer to longer-term time frame charts that assist traders in recognizing the trend, whilst trigger chart pick out possible trade entry points. This article will explore these forex trading time frames in depth, whilst offering tips on which can best serve your trading goals.

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It’s not uncommon for forex traders to approach trading with the aim of collecting ‘x’ many pips a day from the market. Some may even consider adopting a strategy that only makes X amount of pips per day. However, there are complications that arise from this approach and setting such unrealistic goals.

This article will answer the question: “how many pips per day?” and explore the best approach to using pips – considering market fluctuations which affect daily pip movements and how to capitalise on this with a solid trading strategy.

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

The price of gold tumbles to a fresh monthly low ($1755) following the better-than-expected US Retail Sales report, and bullion may face a further decline ahead of the Federal Reserve interest rate decision on September 22 amid broad based weakness across precious metals.

Bitcoin (BTC/USD) has risen above critical resistance after the US CPI print boosted demand for speculative assets.

With inflationary pressures on the rise, next week’s FOMC meeting minutes (22 September) could be a make or break for digital assets if the Federal Reserve hints at near-term tapering.

However, with softer CPI’s pushing out expectations of tapering, Bitcoin and Ethereum have managed to hold on to recent gains, at least for now.

Visit DailyFX Education to discover the importance of macro-fundamentals in global markets

A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. This is also known as “rollover” and forms an integral part of a carry trade strategy. Traders gravitate towards this strategy in the hope of collecting daily interest payments over and above any currency appreciation from the actual trade.

This article explains FX carry trades with the use of examples and presents a top carry trade strategy to use in your trading.

There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Each major geographic market center can exhibit vastly unique traits and tendencies that can allow traders to effectively execute strategies at any time.

Although the forex market is the most liquid of all asset classes, there are periods whereby volatility is constant, and others subdued. Understanding these different forex session times can improve the reliability of a forex trading strategy.

In this article, we will explore each of these forex market sessions including their key characteristics – forex time zones and how they affect trading.

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Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Maintaining a trading checklist presents traders with a list of questions that traders need to answer before executing trades.

It is important not to confuse a trading plan with the trading checklist. The trading plan deals with the big picture, for example, the market you are trading and the analytical approach you choose to follow. The trading checklist focuses on each individual trade and the conditions that must be met before the trade can be made.

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

Risk management is at the core of any good trading plan, without having a sound set of principles to follow a trader is doomed to fail. We outline rules and factors to consider when customizing a risk management game-plan right for you.

We understand the difficulties of trading, which is why we’ve put together a variety of guides designed to help traders of all experience levels.

Risk management is one of the most important aspects to successful trading, but far too often it’s overlooked. Job #1 for a trader is to always keep yourself in the game. A sound strategy and the discipline to follow it will go long way towards ensuring you stick around.

If you are in the learning stage, your objective is to keep losses very small until you figure out what you are doing from an analytical and strategy standpoint. Adhering to sound risk parameters early-on will go a long way towards building a foundation for later on.

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Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.